Correlation Between Vipshop Holdings and SUPERVALU INC
Can any of the company-specific risk be diversified away by investing in both Vipshop Holdings and SUPERVALU INC at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Vipshop Holdings and SUPERVALU INC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vipshop Holdings Limited and SUPERVALU INC, you can compare the effects of market volatilities on Vipshop Holdings and SUPERVALU INC and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Vipshop Holdings with a short position of SUPERVALU INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vipshop Holdings and SUPERVALU INC.
Diversification Opportunities for Vipshop Holdings and SUPERVALU INC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vipshop and SUPERVALU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vipshop Holdings Limited and SUPERVALU INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPERVALU INC and Vipshop Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Vipshop Holdings Limited are associated (or correlated) with SUPERVALU INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPERVALU INC has no effect on the direction of Vipshop Holdings i.e., Vipshop Holdings and SUPERVALU INC go up and down completely randomly.
Pair Corralation between Vipshop Holdings and SUPERVALU INC
If you would invest (100.00) in SUPERVALU INC on January 21, 2024 and sell it today you would earn a total of 100.00 from holding SUPERVALU INC or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Vipshop Holdings Limited vs. SUPERVALU INC
Performance |
Timeline |
Vipshop Holdings |
SUPERVALU INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vipshop Holdings and SUPERVALU INC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vipshop Holdings and SUPERVALU INC
The main advantage of trading using opposite Vipshop Holdings and SUPERVALU INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vipshop Holdings position performs unexpectedly, SUPERVALU INC can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SUPERVALU INC will offset losses from the drop in SUPERVALU INC's long position.Vipshop Holdings vs. Shoe Carnival | Vipshop Holdings vs. Hibbett Sports | Vipshop Holdings vs. Citi Trends | Vipshop Holdings vs. Zumiez Inc |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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